CIT vs. ORACLE INDIA PVT LTD

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ITA - 606 / 2011HC Delhi06 April 20111 pages
For Petitioner: PL BANSAL
AI SummaryDismissed

What did the High Court hold?

The High Court held that no question of law arises from the ITAT's order. Regarding the first issue, the Court found the matter covered against the Revenue by the Supreme Court's judgment in Commissioner of Income-Tax v. Oracle Software India Ltd., 320 ITR 546, which presumably dealt with the definition of manufacturing in the context of software. For the second issue, the Court noted that the Revenue had already unsuccessfully litigated this very question concerning the assessee in ITA No. 690/2009, which was dismissed by the High Court, and a subsequent Special Leave Petition was also dismissed by the Supreme Court. Therefore, the appeal was dismissed.

What were the facts?

This appeal by the Revenue challenges an order of the Income Tax Appellate Tribunal (ITAT). The assessee is a company engaged in software development. The assessment year(s) are not explicitly stated. The dispute concerns the eligibility of the assessee for deductions under Section 80-IA for duplicating software and under Section 10A for income from its Bangalore software development center. The ITAT had ruled in favor of the assessee on both counts. The Revenue has appealed this decision to the High Court.

What were the issues?

The High Court was asked to decide two questions of law: 1. Whether the ITAT was correct in holding that the assessee's activity of duplicating software on blank discs using a master copy constituted manufacturing, qualifying for deduction under Section 80-IA of the Income Tax Act, 1961. 2. Whether the ITAT was correct in allowing deduction under Section 10A of the Act to the assessee for income earned from its software development center in Bangalore. For the first issue, the Revenue contended that software duplication does not amount to manufacturing. For the second issue, the Revenue had previously raised the same question in ITA No. 690/2009, which was dismissed by the High Court, and a Special Leave Petition against that dismissal was also dismissed by the Supreme Court.

Which sections of the Income-tax Act were involved?

Section 80-IA,Section 10A

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF DELHI AT NEW DELHI . 06.04.2011 . Present: Ms.Prem Lata Bansal, Sr. Advocate with Mr.Deepak Anand, Advocate for the appellant. Ms.Husnal Sayali, Advocate for the respondent. . +ITA No.606/2011 . Two questions of law are proposed in this appeal, which are as under:- (i) Whether ITAT was correct in law in holding that the activity of the assessee of duplicating software on blank disc with the help of master copy amounted to manufacturing activity, eligible for deduction under Section 80-IA of the act? . (ii) Whether ITAT was correct in law in allowing deduction under Section 10A of the Act to the assessee in respect of income earned by the assessee from software development centre at Bangalore? . Insofar as first question is concerned, the same is covered against the Revenue in view of the judgment of the Supreme Court passed in Commissioner of Income-Tax v. Oracle Software India Ltd., 320 ITR 546. As far as second question is concerned, raising this very question in the case of assessee, Revenue had filed ITA No.690/2009, which was dismissed vide order dated 31.07.2009. We are informed that special leave petition filed against that order was also dismissed by the Supreme Court. . ITA No.606/2011 Page 1 of 2 In view thereof, no question of law arises. The appeal is dismissed accordingly. . . A.K. SIKRI, J. . . . . APRIL 06, 2011 M.L. MEHTA, J. Dev . . . . . . . . . . . . . . . ITA No.606/2011 Page 2 of 2 .

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